Ethereum has staged an impressive recovery from its February lows, with the cryptocurrency currently trading at $3,051.36 after successfully breaking above several key resistance levels.
The digital asset appears to be entering a new phase of its cycle, having climbed steadily from the $1,500 support zone established earlier this year to challenge the next major resistance cluster around $3,100 then the December 2025 highs around $4,000.
The current price action reveals a compelling technical setup, as Ethereum has managed to reclaim territory above the 200-period moving average (blue line) for the first time since the initial decline from November’s peaks. This development marks a significant shift in the intermediate-term trend structure, suggesting that the bears’ grip on the market may be loosening.
Next Resistance Levels
Fibonacci extension levels from the major swing high to the February low provide crucial insights into potential resistance zones ahead. The 38.2% level sits at $2,721.99, which has already been conquered, while the 50% level at $3,051.36 coincides almost perfectly with current price action.
The next significant hurdle emerges at the 61.8% Fibonacci level around $3,085.24, followed by the more formidable 76.4% retracement at $3,309.99. These levels represent the battleground where bulls and bears are likely to clash, with a decisive break above the 61.8% level potentially triggering accelerated buying toward the $3,300 region.
Above these Fibonacci levels, the ultimate target becomes the previous swing high around $3,673.27, which would complete a full retracement of the earlier decline. Such a move would signal that Ethereum has successfully transitioned from a corrective phase back into a primary uptrend.
Strengthening Bullish Pressure
The moving average configuration has undergone a notable transformation in recent weeks. While the 100-period moving average (red line) remains below the 200-period average, the gap between these indicators has narrowed considerably. This convergence suggests that a bullish crossover could be imminent, which would provide additional confirmation of the changing trend dynamics.
Price action above both moving averages indicates that these indicators are now functioning as dynamic support rather than resistance, representing a crucial shift in market structure that favors continued upside progress.
The stochastic oscillator has climbed into the upper portion of its range, currently residing in the 70-80 region. This positioning indicates that buying momentum remains robust, although the oscillator is approaching levels where short-term overbought conditions could emerge. Traders should monitor for any divergence between price and the stochastic, as this could signal a temporary pause in the advance.
A look at the MACD region shows upbeat developments, with the signal lines having breached the zero line and the histogram bars turning increasingly positive. This momentum shift suggests that the underlying trend has transitioned from bearish to bullish, supporting the case for continued upside potential.
As with other cryptocurrencies, Ethereum could take cues from US regulatory developments this “Crypto Week” while trade-related developments and geopolitical headlines could also drive overall risk sentiment.
